The XRP token is one of the largest and oldest cryptocurrencies today. Despite the legal issues the Ripple company which is the creator of the token has faced, it is listed among the top cryptocurrencies in the world.
XRP has been one of the top crypto assets for investors. The crypto coin rivals the top crypto assets such as BTC and ETH.
In this article, we will discuss how XRP is a hot commodity in the crypto market.
What Is XRP?
XRP is a cryptocurrency designed as an alternative to Bitcoin, with a focus on facilitating trustless, instant, and cheap cross-border payments.
XRP is a native token of the Ripple company, that controls the development and marketing of RippleNet (Digital payment Network). The idea behind the company and its native token, XRP, predates the crypto industry and Bitcoin itself.
The token relies on a public ledger called XRP ledger for storing transaction details. The payment network does utilize mining to validate and record new transactions. The XRP ledger which requires validator called the unique node list to reach consensus in record time and maintain the transaction ledger.
XRP in the Crypto Market
As of January 2022, XRP price is $0.677891 with a trading volume of $2,574,888,625. It is currently ranked 8th by coin market cap with a live market cap of $32,310,412,505.
It has a circulating supply of 47,663,117,635 XRP coins and a maximum supply of 100,000,000,000 XRP coins.
Why XRP is a Hot Commodity?
As at the time of writing, XRP is ranked 8th among thousands of cryptocurrencies by coin market cap. It is therefore important to know why it has so much holders .
One of the reasons the token is standing high today is because of its role and established history in the crypto world. The design for XRP token has been made before Bitcoin made its debut. It experience in the industry has made it a token to be sought after.
The Ripple company’s partnership with big players in the traditional financial world also goes some way to explain its staying power.
XRP is a hot commodity as a result of its uniqueness. The token is not on a blockchain but a public ledger which is called XRP ledger used for storing transaction details. The XRP ledger utilizes a consensus based on the Federated Byzantine Agreement model unlike Bitcoin’s proof-of-work.
The RippleNet Payment Platform, which has XRP as its token can make use of any currency to transact on the platform.
The fact that it was created to be a speedy, less costly, and more scalable alternative to other digital assets and existing payment platforms makes it a choice for investors.
Also Read- Things To Know Before Investing In XRP